The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-31
STOCK SPECULATIOJS.
COMPLAINTS OF DULL TIMES In
WALL STREET.
Ssne Of the UnderlIib Causes
Mere Profits In Building Than
Running Railways.
brlcIAL 70 TEE APpsAL.i

NKw YoRK, July S0.-The strain In
Wall street tends to increase. A big
Structure Of railroad securities hsngs
over the place. II lie harder to sustain
prices. This while the consumption
Of pig iron is immense. The brokers
complain Of small business and are
hunting remedies. While Wall street
complains, De Lssseps Is filing the
popular French i,urna's with praise
Panama canal stock. and report has
II that there 10 no lack Of subsciip-
tons. Emotional appeals are made
for tire canal as means Of adding to
French glory.
CRASH IN PANAMA SHARES
at no distant day appears inevitable.
As q disturbing IL nuence the effect
must be great. A near possibility OF
this sort helps to provoke thought In
Wall and Lombard streets. The wiser
heads ara taking stricter account OF
the weather. This Ia difficult In the
thick OF things. Even the old heads
oil the street are laying the dull times
the absence OF the public-to the
excessive commissions, TO the rival
Stock and Petroleum Exchanges and
vhatnot. Back Of the sur ace notions
the simple truth Ia that the business
wsrld 10 becoming more fundamental
In relation TO the great problem OF
railway shares stability.
think OF IL f'ssysa New York msr-
chant who buys Western mortgages
for an investment, "here are quite 49, |
o00, 900 OF stocks and bonds based on |
tho locomotive In this country alone. |
In England something like 81 900 100 |
have been issued, or $4,000, 900
here and there" The new conditions
Se working against the Engllsh rail.
way dividends. The sharper indus.
trial competition OF the Continent com.
pels lower freight charges. In 1886
dividends on the ordinary Eaglish rail.
way stock fell Of one.eighth. Things
have not improved since. The re-
nsrkable fact appears that the guar
snteed charges Of the English roads
have been increasing 90 last Of late
that the dividend fund runs low. This
suggests whether the dividends for
some time past have not really been
paid from the sale II new debenturee.
Turning 10 this country the great
difficulty has been and Is that IL has
always paid better 10 build railroads
than TO run them. Look at
rHr RKPoHIs or THf st. PAUL
and Northwestern tystems. The De.
uies show that the ~. Paul mortgage
added from 1880 to 1885 cost 81, 900
mile. This while In 1880 the liabili.
ties OF the st. Paul were bu, S27, 2S5
per mile. There must be big prof.
TO some one here. Again take the
Northwestern. The liabilities we're
increased on scconnt Of new copslruc.
tons from 1880 10 1885 at the rate of
$4,000 per mil. The road's total liza.
bllities per mile we're increased from
s37 900 to az 900. Under such nnanc
Ing the report Of earning and the like
are Of slight Importance,
Tbs danger 10 that the sober money
oil The country 10 going from the rail.
wsy stock into tie shares Of the great |
pspnisstdring companies. In Tact,
tbess are coming 10 be recognized on
the New York Stock Exchange. Here
10 Q partial list Of new registrations OF
the sort:
Tennessee ccsi aud Iron Company
ktcek and II lnds ..., ,..... , ..... Gil 100 OD
The Philsd.lp his Co, Natural Gas $4,000
lis Can sres Goal ssd Iron Co. 2,yS.So1
hauitahle Gss liGnt Co.,.,,......,...., s,oOO,O
Cousbs, and bootins VALLEY Coal -
!. nl. III coSioiid.s.d c.sli MIN: D0'O"
cksftr.s v.Ilsy G.s Co ............ S,cco.Ooo
Theee illustrate the character OF the
new registration. And now the mines
Of the new Gogebic iron region a.
Lake Superior are TO b. consolidated
into q COMPANY OF sl0,0O0,0OO capital
and the stock Exchange will b. asked
10 list the shares. May II not bs that
the how Of investment Is distinctly
away from speculative railway secnr.
itiee 10 great corporations In tho 70.
gion q prodsc,ionI These new REG.
isiratiots are small, bat they are Ger.
tain 10 increase immensely. While
they are enterii q a. the front OF the
Exchange the "Ducket chops" are
ppriuging up In the rear. IL does not
follow tina the great volume OF bet.
ting transactions In the present
.buckst shops" has been taken away
from the exchanges, bat II Ia fair 10
say that the speculative interests In
railway stocks at the present tins
very largely gather In tbs shops. A
down iowa genius has invented a big
machine which grinds out prices &C.
eofdipf 10 mathematical Tales anil
whose Zoe nations are asserted By the
propristor 20 be an improvement on
the hteek Exchange; that the latter
are bit the vhims Of Gould, while
The iormer ara At least square"
There can be no doubt that gradu.
ally the hnctuatons In the priose of
railroad setu tiles In Wall street have
become less Important a. an index Of
The oountrys general trade aud indus.
Try. This a. the railroad has passed
nom The constructive into the specu.
l.tiye st'ge. Slowly the positive stage,
The era OF the greater systems than
now, aud poBdbly bat one great or.
Rsnsition, under high control. A,
being reached. Along with this move
meni, a. indioa ed, there is coming
about The grouping or consolidation
oil the great primary industries Of the
country. As the shares OF there nav
interpretations hnd their way into the
STOCK Exchanges Of tie country the
demand for the securities OF the yery
railway that has brought about these
thlngs Ia threatened. Once A bit of
philosophy, the point has come 10 be
. matter Of practical butine~.